Greening of the Financial System: a new Paradigm of Economic Development

The relevance of the study is due to the fact that in the conditions of rapid development of world production, there is an increase in the consumption of natural resources and the negative human impact on the environment increases. In this regard, the world community is offered a transition to a “green” low-carbon economy as a way to resolve the growing contradiction between environmental challenges and public needs, which requires significant investments. An important role in financing the “green” economy and achieving sustainable development goals is assigned to the financial system, which redistributes financial resources to solve socio-economic and environmental problems. In recent years, the number of financial institutions declaring their commitment to the concept of sustainable development and the “green” economy model has been growing. The subject of the study is the process of greening the financial system. The purpose of the work is to substantiate a new paradigm of economic development through the greening of the financial system.

The study examines the main international initiatives in the field of greening the financial system; reveals the content and correlation of the categories of “green” finance, climate finance and sustainable finance; analyzes the state of the global market of “green” financial instruments; examines the process of development of ESG banking in Russia. The article concludes that in the Russian Federation, the level of development of ESG banking remains quite low and is at the initial stage of its formation.

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